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(Alliance News) - Ascent Resources PLC said Tuesday it has made its first acquisition in Cuba, specifically Energetical Ltd, a UK-based firm with exclusive rights to secure a production sharing contract on an onshore Cuban oil licence.
Also on Tuesday, the onshore oil & gas company said that discussions with it and its litigation funder has been withdrawn by the funder, despite it previously issuing the non-binding letter of intent for the agreement of continued discussions.
Ascent said it is still assessing the merits of litigation compared to developing the Petisovci gas project in Slovenia collaboratively with the government and its partners.
Energetical has exclusive rights to the 9B block in Cuba, which contains the onshore Majaguillar and San Anton fields, which produces 190 gross barrels per day from three wells.
Ascent will acquire Energetical through the issue of 6.0 million shares, as well as a deferred consideration of GBP450,000, GBP300,000 of which will be satisfied in shares and GBP100,000 in cash.
Ascent is reviewing further potential further acquisitions to develop a broad Cuban portfolio across both oil and gas, and potentially mining, alongside Slovenia and further European growth opportunities.
"Cuba is one of the last remaining largely untapped hydrocarbon provinces of scale. We see here, despite the recent market turmoil and oil price collapse, the unique ingredients for a new, highly material, growth trajectory across oil, gas and mining when the cycle turns. We also see near term inflection points for Cuba, including the approaching US elections," said Executive Chair James Parsons.
Shares in Ascent Resources closed down 4.5% at 3.70 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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